How To Build Generational Wealth

Generational wealth refers to our ability to pass our assets to our children and grandchildren as part of our family legacy.

The current generation wants to leave behind family wealth as a legacy for our children, the next generation, so they have financial advantages to better themselves.

As parents, we want to ease our children’s financial pressures, so they don’t have to take on burdensome debt unnecessarily, which can help them find success and happiness while further growing their wealth.

To build wealth, you need to start by taking care of your basic financial needs. You may what to consider using Personal Capital’s free comprehensive financial management tools. What does managing your finances well actually mean?

Build Multiple Income Streams

Rather than work in the family business, many people develop multiple streams of income besides their wages. There are many reasons to forge various income streams: job insecurity, irregular income, or expanding your income potential.

You can plan to build generational wealth, but you need to incorporate insurance to protect your assets from loss of income, injuries, significant disasters,  lawsuits, creditors, or other claims.

Buy Insurance For Asset Protection

You can send your children to college with less or no debt by regularly contributing to tax-advantaged 529 college savings funds as early as possible.

Invest In Your Children’s Education

Parents can be most influential in guiding them in handling money by showing how we save and spend money, using props like pennies or their toys.

Teach Your Children About Being Fiscally Responsible

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